Essar Power to invest Rs 4,500 crore in Andhra Pradesh renewable project
The 300 MW project will combine solar and wind power with battery storage to provide dispatchable energy.
Essar Power will invest approximately Rs 4,500 crore in a 300 MW renewable energy project in Andhra Pradesh, according to reports by Urban Acres, Deccan Chronicle and Moneycontrol. The company's renewable arm, Essar Renewables Ltd (ERL), signed a power purchase agreement with state-owned NHPC Ltd for the project.
The initiative will integrate solar and wind generation with Battery Energy Storage Systems (BESS) to supply firm and dispatchable renewable energy. This approach aims to manage generation fluctuations and provide a more predictable power supply compared to standalone solar or wind plants.
The investment supports Essar Power's goal to create a 5 GW energy portfolio that includes renewable, thermal and gas-based generation. Essar Renewables has already secured renewable energy tenders from NHPC and SJVN with a total awarded capacity of about 1 GW.
Srinivasan Vaidyanathan, Operating Partner – Infrastructure at Essar Group, said a sustainable and reliable energy system is vital for India's development. He noted that the group's energy sector experience and focus on new technologies would assist in India's energy growth phase.
Ankur Kumar, CEO of Essar Power, described the 300 MW project with NHPC as a milestone for building a scalable renewable energy business. He stated the agreement would grow the company's presence in solar, wind and battery storage.
The project arrives as India aims for 500 GW of non-fossil fuel-based installed electricity capacity by 2030. The company has not yet provided a specific location within Andhra Pradesh or a timeline for commissioning the project.